Shares of SHOUGANG LANZA (02553) surged more than 8% in late trading, hitting a new all-time high of HK$48.66. At the time of writing, the stock was up 6.41% to HK$47.5, with a turnover of HK$47.72 million.

Key Development

On June 18th, the company achieved a significant milestone with the successful one-time commissioning of the Hebei Shoulang Phase II project. The facility has successfully produced qualified anhydrous ethanol with a concentration exceeding 99.9%. This marks the full process integration of the world's first 10,000-ton-scale demonstration project that utilizes industrial tail gas containing CO2 for the biological synthesis of anhydrous ethanol, officially entering the commercial operation phase.

Industry Context and Future Plans

It is noteworthy that on June 9th, American Airlines and Google signed a large-scale agreement for Sustainable Aviation Fuel (SAF). Analysts at Huayuan Securities believe SAF is a critical pathway for decarbonizing the aviation industry, and global demand for SAF is expected to continue rising.

SHOUGANG LANZA plans to construct a Sustainable Aviation Fuel (SAF) facility in Baotou, Inner Mongolia, in 2026, with operations scheduled to commence in 2027. This move is seen as opening up long-term growth potential for the company's industrial chain extension.